In accordance with a Bloomberg report, cryptocurrency exchange Binance is considering terminating partnerships with its business partners in the United States. Due to the Securities and Exchange (SEC) Commission’s tightening of regulatory standards, the market’s top cryptocurrency exchange is allegedly considering delisting tokens from any businesses situated in the United States.
The Atmosphere Of Binance is Tense After the Paxos Incident
As the SEC filed a lawsuit against the cryptocurrency company Paxos and claimed that BUSD, a stablecoin tied to the US dollar, is a security, the relationship between exchanges and the US regulator has deteriorated to one of worry and uncertainty.
Furthermore, the source stated that Binance is reevaluating its assets in the United States. Binance does not have a license to operate in the United States, although it does do business there through its subsidiary Binance.US.
Changpeng Zao Refuted the Claims
In a tweet, Binance CEO Changpeng Zao (CZ) refuted the charges with a Twitter post. Binance’s CEO has recently been involved in the scandal. According to Reuters, the crypto exchange transferred $400 million from a “secret” account linked to the exchange’s subsidiary Binance.US, with the help of crypto-friendly bank Silvergate.
According to reports, the cash was transferred to a trading business owned by CZ, Merit Peak. It is a trade business that was established in the British Virgin Islands in 2019. The company has previously contributed more than $1 million to the Binance affiliate Binance.US.
Did the Bull Run Toss into a Wall?
According to Kimberly Soward, a representative for Binance in the United States, Merit Peak is not trading or offering services on the Binance.US platform, and only employees of Binance’s subsidiary in the United States have access to it.
Despite a crypto bull run that is only getting started, the crypto market has had a tough Q1 amidst heightened scrutiny from US regulators. This raises numerous concerns and doubts among cryptocurrency investors. The regulator is pressing the sector on many fronts, including which organizations can have custody of their clients’ money; the future for exchanges in the short term in the US jurisdiction has to be clear.
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